Kirsten Spears, the Chief Financial Officer and Chief Accounting Officer of Broadcom Inc. (NASDAQ:AVGO), recently sold a significant portion of her holdings in the company. According to a filing with the Securities and Exchange Commission, Spears sold 12,570 shares of Broadcom's common stock on December 20, at a price of $229.62 per share. This transaction amounted to a total value of approximately $2.89 million. The stock has shown remarkable strength since then, with InvestingPro data showing a 12.7% gain in the past week alone, currently trading near its 52-week high of $251.88.
Following this sale, Spears holds 325,443 shares of Broadcom, a figure that includes 134,360 restricted stock units. Broadcom, now a $1.15 trillion market cap giant in the semiconductor industry, continues to see active trading from its executives, reflecting ongoing shifts in personal investment strategies. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, with over 20 additional key insights available to subscribers through their comprehensive Pro Research Report.
In other recent news, Broadcom Limited has been a focal point in the financial sector due to its robust growth in the artificial intelligence (AI) sector. Earnings reports indicate a threefold year-over-year increase in AI revenues for fiscal year 2024, reaching $12.2 billion. Projections for fiscal year 2025 suggest a further 40% year-over-year rise, driving revenues to $17-18 billion. Analyst firms such as UBS, Bernstein SocGen Group, JPMorgan (NYSE:JPM), and Goldman Sachs (NYSE:GS) have expressed confidence in Broadcom's growth trajectory, resulting in increased price targets ranging from $230 to $270.
These adjustments follow a thorough analysis of Broadcom's Serviceable Addressable Market (SAM) disclosures and a reassessment of the potential for its custom compute and AI networking businesses. The company's SAM forecast for fiscal year 2027 projects a range of $60 billion to $90 billion, indicating a sharper growth trajectory than earlier estimates. This is based on specific projects with its three leading AI Custom Compute customers and does not account for potential business with two new customers that have not been announced yet.
Recent developments also highlight Broadcom's solid financial health, with a noted 11% dividend increase and a focus on reducing debt. The company's strong free cash flow, which increased by 10% year-over-year, is expected to surpass $30 billion in fiscal year 2025 according to CFRA. These factors contribute to the favorable outlook for Broadcom's financial performance in the coming years.
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